5 Ways A Lettings Agent Could Help You To Make More Money From Your Property
Whilst seasoned landlords with large property portfolios usually see a lettings agent as a necessary ally, many casual rental owners view management support as an additional expense. Yet when looking at property ownership from a commercial perspective a lettings agent is a vital component of its profitability.
Having an expert eye cast over proceedings is in fact highly beneficial for all landlords – not just those who make a living from their portfolios. Just as an accountant streamlines a company’s earnings and a salesman raises revenue, here we explain why professional support is a key aspect of success in property rental – and how using a lettings agent could help you to make more money.
Property support is cost-effective from a time management perspective
If you were asked to add up every hour you have spent to date managing your property, what figure would you come to? Owning and self-managing a rental property is incredibly time-consuming – especially when you have additional responsibilities, like work and family life.
When you multiply the hours spent on your rental property by the hourly rate you receive via your primary income, it’s easy to see how the cost can add up financially – as well as in terms of your time and energy. Lettings agents offer fantastic value for money. By comparison, the fee you’ll pay per month is likely to amount to much less than the value of the time you currently spend managing your property. As they are experienced and have the appropriate systems in place property managers also avoid the wasted time and costly mistakes that often set rental owners back when they try to take everything on themselves.
An appreciation of market and location
The role of a lettings agent is perhaps most appreciated during vacant periods when landlords need to fill their property – fast. Whilst they are normally approached during the void when tenants have already vacated the property, having a lettings agent on board consistently ensures that they can effectively plan ahead – minimising vacant periods or eliminating them altogether. As soon as your current tenants give notice, they will be actively introducing your property to new ones, arranging viewings, putting together marketing material and promoting the rental online. The alternative means playing catch up whilst you lose money each and every day your property stands empty.
Circumvent costly mistakes with tenants
Tenant liaison is perhaps the most unpalatable aspect of property rental for many owners, who tend to shy away from tricky topics, difficult subjects and conflict. The issue with this is that problems are allowed to fester, resentment brews and tenants feel as though they aren’t listened to or looked after.
Whilst not having landlords on the scene is preferable to some for understandable reasons, others see relative isolation as an opportunity to flout rules set out in the tenancy agreement, or even start sub-letting your property. Lettings agents are constantly checking up on your tenants, performing regular sweeps of your property to ensure that everything remains in top condition. They’ll also be the first port of call should your tenants have any general issues, arranging reputable tradesmen to sort them out on your behalf.
Ensure rent is paid on time
Steady, timely rental payments keep your property business afloat – whether you have a single investment rental or a portfolio of houses and apartments. When you manage the financial side of proceedings yourself, you also have to chase rent and oversee the set-up of direct payments, ticking all the formal boxes that come along with those processes. This is incredibly time-consuming – and you have to ensure that you get it right both from a financial and legal perspective.
Lettings agents take care of this whole process for you – ensuring that everything has been set up properly from contract signings to payment collection. They’ll also have a contingency plan for late or missed payments which will be followed stringently with the use of bailiffs and court orders where necessary – so stringently in fact that some agents actually guarantee your income. This is perhaps the most important aspect of property rental – as being paid on time ensures that you are protected in all events and have the funds to pay mortgage bills and cover the costs associated with your property.
Lettings agents will usually subtract their costs from your rental income so it’s in their best interests to vigorously chase debtors – and whilst the benefits of their involvement are noticeable, you will hardly miss the relatively small fee taken each month.
For more insider tips and tricks here on the blog – or get in touch to discover how our property management services could get you back on track.